LG Electronics is starting to operate a new group that will deal with Chinese markets in order to find reasons why it is struggling in China, establish strategies, and prepare a steppingstone for its comeback.
LG Electronics formed a ‘Chinese Smartphone Market Task Force (TF)’ under its Korea Business Headquarters. This is the first time LG Electronics has formed a task force in order to deal with Chinese Smartphone markets.
Previously, LG Electronics carried out a reorganization of its group in November of last year and transferred its Chinese Corporate under the guidance of Korea Business Headquarters and divided it into five branches. Its Chinese business is now under the management of Korea Business Headquarters.
Formation of this task force was done under Department Head (President) Choi Sang-kyu of Korea Business Headquarters’ will to examine every problem that LG Electronics is facing from Chinese markets where it has been struggling for many years.
After entering Chinese markets in 2001 by exporting 500,000 units of 2.5th generation cellphone (model name: LG-510) to CEC Mobile and others, it has yet to make any significant results within Chinese markets.
LG Electronics’ market share from Chinese Smartphone markets is under 1% and it has not been releasing any new products after LG G5SE in May of 2016.
LG Electronics formed this task force in order to understand what kind of problems its mobile business in China is facing as its Chinese business is now under the management of Korea Business Headquarters. This is its first step towards better distribution after concluding that it cannot find problems with just current state of its business.
TF’s role is to work with MC (Mobile Communication) Business Headquarters regarding technical parts that Chinese markets are requesting and strengthen LG Electronics’ distribution channels in China. TF started to find out what kind of image is perceived by Chinese consumers from LG Electronics’ Smartphones and improve this image, develop products with better profitability, look for solutions from within China that are worth investing into, and apply business strategies that were successful in South Korea.
From a medium-term and long-term perspective, LG Electronics’ goal is to prepare a foundation to enter 5G Smartphone and foldable Smartphone markets.
LG Electronics is currently developing 5G Smartphones with a hope of releasing them during the first half of 2019 and it is competing with Samsung Electronics, LENOVO, and ZTE within foldable Smartphone fields. Since China is the biggest Smartphone market, it believes that it is important to secure its position within Chinese markets.
“We formed this task force to look for and support smooth results of our Chinese business.” said a representative for LG Electronics. “From an aspect of entire company, we are looking to support our businesses in China.”
Staff Reporter Choi, Jaepil | firstname.lastname@example.org